PROGRESS TOWARDS SOLUTIONS. Graham Briggs Convenor OLD Working Group AMI Tuesday, 6 February 2018

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1 PROGRESS TOWARDS SOLUTIONS Graham Briggs Convenor OLD Working Group AMI Tuesday, 6 February 2018

2 OLD WORKING GROUP Occupational Lung Disease Working Group formed late 2014 to work with all stakeholders to design and implement a comprehensive and sustainable solution in respect of compensation for occupational lung disease (OLD) in the gold mining industry in South Africa Six major South African mining companies with current or past interests in gold mining - African Rainbow Minerals, Anglo American SA, AngloGold Ashanti, Gold Fields, Harmony and Sibanye Stillwater 1

3 UNDERGROUND DUST MANAGEMENT Fundamental goal of Working Group companies is to eliminate silicosis entirely through effective management of silica dust Significant and ongoing progress is being made MHSC milestones set in 2003 that no new cases of silicosis will occur among individuals unexposed prior to 2008 For the four Working Group companies still involved in gold mining, there have in fact been zero such diagnoses in the past ten years taking us back to 2008 That is not conclusive evidence that the milestone has been reached Nonetheless, a heartening sign of progress 2

4 WHO HAS BEEN INVOLVED? Has been a major project, with negotiations and consultations involving the WG companies other mining companies and the Chamber of Mines organisations claimants lawyers three government departments other state institutions five unions Civil society groups 3

5 SETTLEMENT NEGOTIATIONS Last month we and the claimants legal representatives jointly wrote to the Supreme Court of Appeal asking that the hearing scheduled for March be postponed until further notice On grounds a settlement in sight Followed announcements earlier in the year by each company making financial provision for the expected cost of a settlement 4

6 SETTLEMENT STRUCTURE To provide claimants or their dependents with top-up payment, over and above their statutory payments Payments to be made by a trust funded by the six companies Settlement will address both silicosis and occupational TB Tracking and tracing potential eligible claimants Individuals (miners or ex-miners) will have the right to opt out High Court has to approve the terms of any settlement 5

7 WHY A SETTLEMENT RATHER THAN LITIGATION? Mutually acceptable comprehensive settlement which is both fair to the claimants and sustainable for the companies Class action outcome uncertain Preferable to protracted and costly litigation Benefits flow to recipients sooner Not in shareholders interests to have this uncertainty This makes some recompense for a legacy issue Good for shareholders and also for the country Settlement is part of a comprehensive resolution of issues relating to compensation for occupational lung disease in the gold mining industry 6

8 THE OTHER WORK INTEGRATION OF FUNDS Government, the industry, the unions and all other stakeholders are currently involved in detailed discussions that will lead to the transfer of new employees to the superior Compensation for Occupational Injuries and Diseases Act (COIDA) compensation system 7

9 FIXING ODMWA Working Group quickly established a strong working relationship with then new Compensation Commissioner Dr Barry Kistnasamy and his team. Working Group has provided following assistance: Seconding a senior occupational health expert appointed to the MBOD as director seconding a senior manager to act as COO of the MBOD/CCOD seconding 6 medical doctors to the MBOD panel for the certification of ODMWA claims paying over R58 million to date for various services necessary for the successful completion of work being done in support of the MBOD/CCOD worked with Department of Health in outreach programmes in Swaziland, Lesotho, Mqanduli, Kuruman and Klerksdorp. More are planned The Chamber of Mines, too, contributed tens of millions of rands to a data capturing project and One Stop Service Centres 8

10 ODMWA PROGRESS SO FAR The outcome has been a 346% increase in the numbers of former miners compensated, from: payments (R79 million) in the 12 months to October 2015, to payments (R225.9 million) in the 12 month to October 2017 Outreach programmes have also come to include reaching people eligible to get: repayment of their retirement fund contributions unemployment insurance social security entitlements But still a way to go 9

11 A REMARKABLE PROCESS Good example of joint problem solving between wide range of stakeholders where there had been low levels of trust and diverse interests, including within particular groups like the companies, the unions and government departments. Has been one of the biggest multi-stakeholder engagements that has taken place anywhere in the world. An example to the world of what can be achieved with a methodical approach to problem solving 10

12 PROGRESS TOWARDS SOLUTIONS Graham Briggs Chairman OLD Working Group AMI Tuesday, 6 February 2018